DC Attorney General Sues Athena Bitcoin Over Alleged Scam-Linked Fees

Highlights:

• The attorney general has sued Athena Bitcoin for deceptive practices and charging undisclosed fees on scam-related deposits.
• The DC lawsuit alleges that Athena Bitcoin deposits in the first months came from scams tied to hidden fees.
• The rise in ATM scams has prompted various jurisdictions to come up with laws that will regulate the sector.

The District of Columbia Attorney General’s office filed a lawsuit against Athena Bitcoin, accusing the crypto ATM operator of fueling scams and charging hidden fees. A staggering 93% of the company’s deposits in the first 5 months of its Washington venture were fabricated, the AG alleges.

Advertisement

🇺🇸 ATM operator under fire: lawsuit against Athena Bitcoin over hidden fees and scams

The Washington Attorney General has sued Athena Bitcoin, accusing the crypto ATM operator of charging hidden fees of up to 26% and failing to protect users from fraud.

According to the… pic.twitter.com/N2IERgKQYK

— Atlas21 (@Atlas21_news) September 10, 2025

Officials claimed that the company charged victims fees as high as 26% without clear disclosure. Attorney General Brian Schwalb criticized the firm for failing to adopt effective safeguards against fraud and for allowing its machines to become an avenue for international schemes.

The filing also detailed significant losses among elderly residents. The average loss per transaction stood at $8,000. In one case, a local resident reportedly lost $98,000 through a single scam conducted via an Athena kiosk. Authorities said the company’s inadequate compliance oversight created an “unchecked pipeline” for illicit financial transfers.

Authorities accuse Athena of having stolen hundreds of thousands of dollars in concealed charges to susceptible residents between May and September last year. Investigators argued that the company ignored red flags and continued operating despite knowing its machines were central to scam-related activity.

Attorney General Sues Athena Bitcoin Over Hidden Fees

The lawsuit accused Athena of misleading customers by using the term “Transaction Service Margin” in its Terms of Service without explaining that it represented a fee. Officials argued that this practice deceived consumers and violated local laws designed to protect elderly and vulnerable adults from financial exploitation.

Rather than work to prevent these scams, Athena intentionally profits from them.

Athena let seniors quickly deposit huge cash amounts into wallets it knew were already used to scam other victims.

It then charged outrageous hidden fees on deposits — up to 26% per transaction. pic.twitter.com/g5oYbBepo7

— AG Brian Schwalb (@DCAttorneyGen) September 8, 2025

Victims were allegedly tricked into making fake deposits, according to the attorney general’s office. Scammers often pretended to be bankers, technical support staff, or investment advisors to pressure victims into using Athena machines.

Authorities claimed that Athena collected six figures in hidden charges during its first months in Washington. Rising national worries about fraud connected to crypto ATMs coincide with the case. According to FBI data, more than 11,000 complaints involved these machines, with losses surpassing $246 million last year.

States have begun to introduce measures in response. Arizona, Colorado, and Michigan set transaction caps to reduce losses from scams. Among the major suppliers, Athena is the third largest, after Bitcoin Depot and CoinFlip, with 13% of the country’s crypto ATMs under its control.

Global Crackdown and Proposed Safeguards

Other governments not within the United States are also tightening their grip on crypto ATMs. In Australia, the stricter regulations put forward by the AUSTRAC comprise a lower cash limit and increased scrutiny of operators. Regulators declined to renew the license of Empires, a local operator by the name of Harro, and imposed stringent operating conditions.

In the United States, a ban on crypto ATMs was placed in Spokane, Washington, where the government mentioned its role in fraud against vulnerable citizens. At the legislative level, Illinois Senator Dick Durbin sponsored the Crypto ATM Fraud Prevention Act. The bill would limit new users to $2,000 in daily transactions and not exceed $10,000 in two weeks. It also asks operators to discuss details with those users who are trying to make transactions over $500.

Advertisement